Using tax assessment to make an offer

4 Replies

Hi BP, I am really new to this, and am considering making an offer on a duplex in my area. When figuring out how much to offer, can I use the tax assessment as a somewhat valid appraisal on the current value of the house before repairs?

Last year I actually bought a property (actually saved it from foreclosure) that was assessed for $56,250 based on 35% of the appraised value ($160,714) by the county...I paid exactly $160,714 for it.....It is easily worth $200k........I could have gotten it a lot cheaper if I would have let it go to foreclosure and bought at sheriff sale, but I really wanted this property (its a business) and that process would have taken 6-9 months which means the store would have had to close.  And I didn't want that to happen.

Not sure this helps, but that was my experience with tax assessment....I got the bank to agree to sell it to me for that the owners were upside down, owed about $230k and facing foreclosure.

@Marlene Michael  Bad idea to use the tax assessment to determine the current value of the house. The real market, i.e. the appraiser, determines value by reviewing comparable sales over the last 6 months within a certain distance of the subject property.  Tax assessments usually don't reflect what's happening in the real market.

Originally posted by @Marlene Michael :

Hi BP, I am really new to this, and am considering making an offer on a duplex in my area. When figuring out how much to offer, can I use the tax assessment as a somewhat valid appraisal on the current value of the house before repairs?

 You're better off picking random numbers out of a hat.  

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